Analog Devices (ADI) Enters Oversold Territory with a Dividend Worth Watching

Analog Devices, Inc. (NASDAQ:ADI) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds.

Analog Devices (ADI) Enters Oversold Territory with a Dividend Worth Watching

A technician working on power management in a semiconductor factory.

The company designs and sells integrated circuits, software, and subsystems across various industries such as automotive, healthcare, and consumer electronics. Its product lineup features data converters, power management solutions, and MEMS technology. Lately, the company has prioritized innovation by launching new products and forming strategic partnerships, including initiatives like CodeFusion Studio and the ADI Assure Trusted Edge Security Architecture.

In fiscal Q2 2025, Analog Devices, Inc. (NASDAQ:ADI) reported revenue of $2.64 billion, which showed an impressive 22.2% growth from the same period last year. The company’s bookings accelerated across all end markets and regions, leading to continued sequential growth in backlog. The strengthening demand observed throughout the fiscal quarter supports the company’s outlook for ongoing growth in the third quarter and reinforces the belief that the business is experiencing a cyclical upturn.

Analog Devices, Inc. (NASDAQ:ADI)’s cash position remained strong, with operating cash flow of $3.9 billion and free cash flow of $3.3 billion over the trailing twelve months, representing 39% and 34% of revenue, respectively. During the second quarter, the company returned $0.7 billion to shareholders through dividends and share repurchases.

Analog Devices, Inc. (NASDAQ:ADI) has raised its dividend payouts for 21 years in a row. The company offers a quarterly dividend of $0.99 per share and has a dividend yield of 1.74%, as of July 25.

While we acknowledge the potential of ADI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.